Microsoft Xbox division faces further rounds of staff reductions

Microsoft's gaming division is expected to undergo three additional rounds of layoffs as part of a broader corporate restructuring. Reports indicate that these cuts are scheduled to occur through November and January, continuing a cycle of workforce reduction that began earlier this year.

In July, Xbox CEO Asha Sharma initiated an organizational strategy targeting the elimination of 3,200 roles by the end of the 2027 fiscal year. A significant portion of these reductions occurred immediately, followed by the dismissal of approximately 260 employees in September. These moves are part of a wider effort to streamline the division's operations.

Beyond headcount reductions, the restructuring has resulted in the divestment of internal studios. Companies such as Double Fine and Compulsion Games have transitioned back to independent status. Reports suggest that Ninja Theory, the developer behind the Senua series, may face closure as the reorganization progresses.

The ongoing downsizing comes amidst industry-wide speculation regarding the long-term strategic direction of the Xbox brand, including rumors of potential divestiture or a standalone spin-off. Microsoft has yet to provide public confirmation on the specific scale of the upcoming layoffs.